Vroom, Inc. (VRM) AI Stock Analysis

• Market Cap: $129.05M
• Dividend Yield: N/A
• Average Volume (3M): 2.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -81.31%
• EPS Growth: 87.13%
• Country: US
• Employees: 704
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -5.22
• Shares Outstanding: 5,199,620
• 10 Day Avg. Volume: 2,692
• 30 Day Avg. Volume: 2,937
• PEG Ratio: <0.01
• Price to Book (P/B): -0.30
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -0.09
• Enterprise Value/Market Cap: 5.07
• Enterprise Value/Revenue: 231.20
• Enterprise Value/Gross Profit: -48.58
• Enterprise Value/Ebitda: -48.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $17.00 ▼(-31.51% Downside)

Vroom, Inc. is facing significant financial and technical challenges. The company's declining revenues, negative profitability, and high leverage are major concerns. Technical indicators also suggest bearish momentum. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score. These factors collectively result in a low overall stock score.

Positive Factors

Innovative Business Model

Vroom's direct-to-consumer model and digital platform streamline the car buying process, offering convenience and potentially attracting a tech-savvy customer base.

Revenue Diversification

Revenue from financing services and trade-ins provides diversification beyond vehicle sales, potentially stabilizing income streams and enhancing customer retention.

Strategic Partnerships

Partnerships with financial and service providers can enhance Vroom's market reach and service offerings, supporting long-term growth and competitive positioning.

Negative Factors

High Leverage

High leverage indicates financial risk, potentially limiting Vroom's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Cash Flow

Negative cash flow suggests operational inefficiencies and may hinder Vroom's ability to sustain operations without external financing, impacting long-term viability.

Declining Revenue

Significant revenue decline reflects challenges in market demand or competitive pressures, potentially affecting Vroom's ability to maintain market share and profitability.

Vroom, Inc. Business Overview & Revenue Model

Company Description

Vroom, Inc. operates as an e-commerce used automotive retailer in the United States. It operates end-to-end ecommerce platform for buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. The company was incorporated in 2012 and is headquartered in New York, New York.

How the Company Makes Money

Vroom generates revenue primarily through the sale of used vehicles. The company operates on a direct-to-consumer model, purchasing vehicles from various sources, reconditioning them, and then selling them at a markup to customers. In addition to vehicle sales, Vroom also earns revenue from financing services, offering consumers financing options through partnerships with third-party lenders. This financing model allows Vroom to earn fees and interest from loans. Additionally, the company may generate income through vehicle trade-ins, where customers can sell their old cars to Vroom, enhancing inventory while providing consumers with a seamless transaction. Strategic partnerships with financial institutions and automotive service providers also play a crucial role in expanding Vroom's offerings and driving revenue growth.

Vroom, Inc. Financial Statement Overview

Summary

Vroom, Inc. faces significant financial challenges, with declining revenues, negative profitability, high leverage, and negative cash flows. The company needs to address these issues to improve financial stability and performance in the highly competitive auto dealership industry.

Income Statement

Vroom, Inc. has been experiencing significant revenue decline, with a TTM revenue growth rate of -50.04%. The company also shows negative profitability margins, including a net profit margin of -2.27% and an EBIT margin of -1.66% in the TTM period. These figures indicate ongoing challenges in achieving profitability and sustaining revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.77 in the TTM period, indicating significant leverage and potential financial risk. The return on equity is negative at -124.23%, reflecting poor returns for shareholders. The equity ratio is low, suggesting limited equity financing relative to total assets.

Cash Flow

Vroom's cash flow statement shows negative operating cash flow and free cash flow, with a TTM free cash flow growth rate of -44.31%. The operating cash flow to net income ratio is -0.50, indicating inefficiencies in converting income into cash. However, the free cash flow to net income ratio is slightly positive at 1.02, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.83M	11.61M	893.20M	1.95B	3.18B	1.36B
Gross Profit	-13.46M	11.61M	161.95M	244.79M	202.10M	71.55M
EBITDA	-13.50M	-43.11M	-171.30M	-392.19M	-334.99M	-188.41M
Net Income	-78.22M	-165.12M	-365.54M	-451.91M	-370.91M	-202.80M
Balance Sheet
Total Assets	949.19M	1.07B	1.48B	1.62B	2.37B	1.72B
Cash, Cash Equivalents and Short-Term Investments	12.41M	29.34M	140.07M	419.51M	1.13B	1.06B
Total Debt	781.37M	752.34M	1.23B	985.76M	1.14B	347.38M
Total Liabilities	822.58M	1.10B	1.35B	1.14B	1.45B	496.95M
Stockholders Equity	126.61M	-30.95M	122.15M	475.24M	915.19M	1.23B
Cash Flow
Free Cash Flow	25.29M	-100.52M	-536.31M	-133.30M	-597.10M	-366.58M
Operating Cash Flow	32.06M	-97.04M	-533.68M	-109.06M	-568.69M	-355.25M
Investing Cash Flow	-59.85M	132.57M	173.15M	-164.21M	-104.29M	-11.33M
Financing Cash Flow	13.99M	-165.99M	97.34M	-469.49M	797.71M	1.24B

Vroom, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24.82
• 50DMA: Negative
• 100DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRM, the sentiment is Neutral. The current price of 24.82 is above the 20-day moving average (MA) of 20.71, above the 50-day MA of 23.58, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 67.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VRM.

Vroom, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RDNW	56 Neutral	$215.08M	-1.89	-268.06%	―	-12.43%	66.92%
CRMT	54 Neutral	$223.30M	-14.16	-2.60%	―	2.07%	-117.51%
UXIN	48 Neutral	$703.04M	-20.38	―	―	―	―
CWH	44 Neutral	$1.02B	-10.68	-26.78%	5.00%	6.58%	-72.69%
VRM	38 Underperform	$129.05M	-1.29	-52.02%	―	-81.31%	87.13%
KXIN	38 Underperform	$21.64M	-0.02	-94.86%	―	-99.25%	90.38%

Vroom, Inc. Corporate Events

Vroom, Inc. Secures $10.5M Note Purchase Agreement

On November 25, 2025, Vroom, Inc. entered into a Note Purchase Agreement with Robert J. Mylod, Jr., the Independent Executive Chair of its board, to support its long-term business strategy. The agreement involves issuing Senior Secured Delayed Draw Notes with a maximum principal commitment of $10.5 million, initially issuing $5 million, to be used for working capital and general corporate purposes, potentially impacting the company’s financial flexibility and operational capabilities.

Vroom, Inc. Reports Q3 2025 Financial Results

On November 10, 2025, Vroom, Inc. reported its financial results for the third quarter ending September 30, 2025. The company experienced a net loss of $27.1 million and an adjusted net loss of $25.7 million for the quarter. Despite these losses, Vroom showed a significant improvement in its net loss and adjusted net loss compared to the previous year, with a $94.3 million and $66.8 million improvement, respectively. The company continued to invest in its long-term strategic plan, enhancing its business intelligence and credit decision engines. Vroom emerged from a Prepackaged Chapter 11 Case earlier in January 2025, which impacted its financial reporting through fresh-start accounting, making previous and current financial statements non-comparable.

Vroom, Inc. Increases Credit Facility to $35 Million

On October 9, 2025, Vroom, Inc., along with United Auto Credit Corporation and Darkwater Funding LLC, amended their existing credit agreement with Mudrick Capital Management, increasing the maximum facility amount from $25 million to $35 million, effective September 30, 2025. This amendment, which did not alter other terms of the agreement, signifies an enhanced borrowing capacity for Vroom, although no funds have been drawn from the facility as of the effective date.